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What does volatility mean for your journey to net zero?
May 20, 2022

Amidst rising energy costs, digitalisation, growing pressure from stakeholders and increasing regulation, organisations may struggle to define their pathway to a low-carbon future. What can you do to protect your business’ net zero plans from the challenges of volatility?


Disruption and volatility are putting organisations under pressure. Digitalisation and new technology developments continue to challenge existing business models. Its increasing dependence on energy and encouraging businesses to drive change to secure competitive advantage. And as customers, employees and shareholders look to engage with companies who understand the importance of decarbonisation, pressure is mounting to prioritise sustainability.




Against this backdrop, many organisations may struggle to define how to achieve their net zero ambitions. A lack of clarity on where to decarbonise, limited understanding of their energy usage, or financial constraints can all make it difficult to know how to balance the demands of planet and profit. But companies that fail to progress their goals may face growing pressure from stakeholders and erosion of their brand’s value.


The most successful, sustainable organisations search for a balance between economic and environmental responsibility. They know that they cannot focus exclusively on rising energy costs without also considering their environmental impact – and they know that prioritising environmental concerns over financial performance would leave them without a viable business model.


Balance is key

But it’s possible to find this balance, and volatility can create opportunity. High commodity prices don’t have to be a hurdle on the net zero journey. Instead, this widespread volatility could be the starting point to future-proofing your energy estate.

Disruption can provide the motivation to explore solutions that can build resilience and improve efficiency and sustainability at the same time. You don’t have to be set back by volatility – with integrated energy solutions, you can bounce forwards instead.

Build your response to volatility

As one of the UK’s leading energy suppliers, we’re committed to helping businesses move closer to a net zero future. Read our report to learn how you can take action now and bounce back from volatility.


Download Executive prespective >

*Step is for any existing customer, or any new business customer, with a total business energy consumption of 150,000 kwh or more. A single fixed contract, with two fixed price point/dates within it. For contract start dates in 2022, the first fixed period will be for the remaining months in 2022 and up to 31st March 2023. The second period will be a weighted average price up to a total contract term of 36 months. For the second period, we guarantee a lower fixed price.

 

**Every unit of electricity used will be supplied by British Gas matched to a mix of renewable certificates and nuclear energy to ensure that your business electricity supply is zero carbon for the term of your contract. We will hold the necessary number of renewable guarantees of origin certificates and nuclear generator declarations as evidence of this zero carbon emissions fuel mix. If there is a change to any law, regulation, decision, guidance or advice by a regulatory authority and/or material change to the availability of the renewable certificates or nuclear declarations which means we can no longer guarantee a zero carbon supply, we will write and let you know, simply visit https://www.britishgas.co.uk/business/sustainable-energy

06 Jul, 2022
Balancing planet and profit during unprecedented market volatility
By Vander Caceres 14 Jun, 2022
Wholesale energy prices have experienced unprecedented levels of volatility since the end of summer 2021, with both day ahead/spot and future contracts surging to all-time highs. In the last couple of months, prices have decreased but still remain high compared to a year ago. This period of high energy prices is expected to continue for the foreseeable future (see next section). Energy prices have surged for a number of reasons: A global increase in gas demand following the ease or end of Covid-related restrictions throughout 2021. After the pandemic, economies across the world started to recover. Asian countries like China saw their imports of Liquified Natural Gas (LNG) increase. This resulted in lower LNG shipments to the UK and Europe. On the supply side, the Covid-19 lockdowns pushed some maintenance work from 2020 into 2021 at a time when demand was recovering. In 2021, gas production hit a record low of 363TWh, 47TWh below the previous record low in 2013. Low production was the result of an extensive summer maintenance schedule which saw shutdowns at several major terminals, as well as the Forties Pipeline System which serves a significant proportion of UK gas and oil production. A lack of wind in the summer resulted in higher demand for conventional power. European gas storage in 2021 and Q1’22 remained far below previous years and it’s unclear how these are going to be replenished in the summer given the concerns around supply including the potential suspension of Russian gas flows due to sanctions. The 1,234km offshore Nord Stream 2 gas pipeline, which was designed to double the flow of gas between Russia and Germany (and by extension the rest of Europe) has been abandoned following the invasion of Ukraine. Gas storage in the UK is extremely minimal with capacity at less than 2% of the UK’s annual demand, compared with 22% for other European countries. Whilst the UK is not heavily reliant on gas coming from Russia, it sources almost half it’s gas supply from Europe. Hence, wholesale gas and power prices in the UK are now subject to knock-on-effects from the conflict in Ukraine.
08 Mar, 2022
As part of Ofgem’s Targeted Charging Review (TCR), the way in which Network Operators recover their costs from suppliers is changing. It means from the 1 April 2022, the distribution of these network charges will partly shift away from Unit Rates and into Standing Charges. And as a result, energy suppliers may change the way they price their electricity contracts. But what exactly does this mean for your business? Ralph Smith, Non-Commodity Cost Analyst at British Gas, outlines the new changes coming our way and how your business energy costs may be effected.
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